Iron ore market seen as the cornerstone of a new commodities super cycle
- Investment banks have a price target of $US150 to $US165 per tonne ($197 to $216/tonne) for iron ore
- ‘Looking at the 2020s, we believe similar structural forces to those which drove commodities in the 2000s could be at play’
- Chronic underinvestment in new mines means supply has not kept pace with surging iron ore demand
Many market experts are seeing the early signs of a new super cycle in commodities, including iron ore, that could equal the wild ride that prices experienced in the 1970s and 2000s.
What is more, they single out iron ore as a commodity heading for an inflection point when prices stay at elevated levels for a considerable period of time.
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